Import Export Code from DGFT: Everything You Need to Know

Whether you’re a seasoned exporter or a newcomer to international trade, the Import Export Code (IEC) is a mandatory passport for any business involved in cross-border transactions. Issued by the Directorate General of Foreign Trade (DGFT), this 10‑digit digital code grants legal clearance to import and export goods, access to duty drawbacks, and eligibility for various trade incentives.

What is an Import Export Code (IEC) and Why It Matters?

The IEC is a government‑issued identifier that confirms you comply with customs, foreign exchange, and tariff regulations. Every company, partnership, or sole proprietorship that intends to import or export must obtain an IEC. Without it, your shipments cannot be bonded, you can’t file customs returns, and you may face hefty penalties.

Key points:

• Legitimacy – IEC certifies that your business is registered and meets basic compliance standards.
• Tax and Duty Advantages – It allows you to claim duty drawback on imports and avail GST rebates on exports.
• Trade Credibility – International buyers often verify your IEC before signing contracts.

DGFT’s Role in Issuing Import Export Code

The Directorate General of Foreign Trade (DGFT) is the nodal agency for all foreign trade activities in India. It manages the online portal https://iec.dgft.gov.in, where applications are filed, fees are paid, and IECs are issued. DGFT ensures transparent processing and quick turnaround, with most approvals granted within 2‑3 days.

Eligibility Criteria for Applying a Import Export Code

The IEC is available to any Indian entity that wishes to carry out international trade. Below are the eligibility highlights:

• Registered Indian business (company, partnership, or sole proprietorship).
• Valid GST registration and PAN card.
• Business must have a bank account in India.
• No prior default in foreign trade loans.

Document Checklist for Import Export Code Application

Before submitting your IEC application, gather the following:

• Legal Documents: Certificate of Incorporation, Partnership Deed, or Sole Proprietor’s PAN statement.
• Identity Proofs: PAN card, Aadhaar card for one director/partner.
• Tax Documents: GST registration certificate.
• Financial Documents: Bank account statement, and in certain cases, proof of bank credit line.
• Address Proof: Utility bill or rent agreement for business premises.

Step‑by‑Step Guide: How to Apply for Import Export Code from DGFT

Step 1: Register on the IEC Portal

• Navigate to IEC portal.
• Click “New User Registration” and fill in your email, phone number, and password.

Step 2: Fill in the Application Form

• Select ‘IEC’ as the required service.
• Enter your business details – name, type, address, and phone.
• Insert your business’s PAN and GSTIN.
• Upload scanned copies of the documents listed in the checklist.

Step 3: Pay the Application Fee

• The fee is Rs. 200 for a standard IEC.
• Payment can be done via Net Banking, Credit Card, or through the DGFT’s Integrated Payment System.
• Keep the receipt for reference.

Step 4: Verification & Approval

• The DGFT will verify the authenticity of your documents.
• In most cases, the IEC is granted within 2–3 business days.
• The IEC number will be available on the portal and sent to your registered email.

Fees, Validity, and Renewal Process

The standard fee for an IEC is Rs. 200. However, if you value terms exceed Rs. 240,000 in a financial year, a higher fee (Rs. 2,000) applies. The IEC has a validity of five years from the date of issue. To renew, repeat the application process and pay the applicable fee.

Who Really Needs an Import Export Code?

It’s not just exporters who require an IEC. Here’s who benefits:

• Importers: Those who regularly bring goods into India and need to claim duty drawback.
• Exporter Partnerships: Credit unions and cooperatives engaged in foreign trade.
• Financial Institutions: Banks providing foreign trade finance need to verify the client’s IEC.
• E‑commerce Platforms: Sellers handling cross‑border sales in India.
• Start‑ups: Even if you presently trade locally, having an IEC prepares you for expansion.

Common Mistakes – How to Avoid Costly Delays

Even small oversights can stall your IEC approval. Pay attention to the following pitfalls:

• Incomplete Documentation – Missing a single file will trigger a request for clarification.
• Incorrect PAN or GSTIN – Ensure the numbers entered match the originals.
• Non‑PDF Format – Upload images in PDF or JPEG as specified.
• Skipped Payment – Never forget to verify your transaction confirmation.
• Wrong Business Address – Portals accept only substantive addresses; shop or office without a physical site may be rejected.

Benefits of Having a Valid Import Export Code

Once you possess an IEC, you unlock a suite of advantages that streamline your trade operations:

• Customs Clearance – Simplifies bond and customs clearance processes.
• Duty Drawback – Claim refund of indirect taxes on imported goods used in exports.
• GST Rebate – Exporters can claim an 100% rebate on input taxes.
• Bank Approvals – Easier access to foreign trade finance and letters of credit.
• Business Credibility – Builds trust with suppliers, logistics partners, and customers.

Frequently Asked Questions about IEC from DGFT

Do I need a separate IEC if I already have an GST registration?

No. IEC and GST are independent registrations but both are mandatory for trading internationally. IEC does not replace GST; it is an additional compliance requirement.

Can I get an IEC as a sole proprietorship?

Yes. Sole proprietors can apply for IEC; they must provide a PAN card and GST registration in their personal name.

Are there any restrictions on the type of goods I can export with an IEC?

IEC is valid for all goods except those restricted or prohibited under the Foreign Trade Policy (e.g., dual‑use weapons). However, export of restricted goods requires separate licenses.

What happens if I change my company structure after obtaining an IEC?

Any change in corporate structure (like incorporation of a subsidiary) requires a new IEC or updating your existing IEC via the portal.

Can I apply for an IEC through a third‑party consultant?

Yes. Many trade consultants facilitate the application, but the final approval is granted directly by DGFT. Ensure your consultant is legitimate and avoids additional charges.

Conclusion – Your First Step to Seamless International Trade

The Import Export Code from DGFT is the gateway to every international transaction. By understanding eligibility, document preparation, and the application process, you remove roadblocks and position your business for growth. Whether you import raw materials, export finished goods, or simply wish to explore new markets, an IEC streamlines compliance, reduces costs, and boosts credibility.

Ready to take your business beyond borders? Visit IEC portal, gather your documents, and apply today. For more detailed guidance or to discuss custom trade strategies, connect with our experienced export consultants. Your global journey starts with a single code!